What Is Gross Rent Multiplier?
GRM is a quick screening ratio that compares a property's price to its gross annual rental income, before any expenses are subtracted.
Formula
GRM = Property Price ÷ Gross Annual Rental Income
Example
A $360,000 property renting for $30,000 per year has a GRM of 12.
Why It Matters
GRM is faster to calculate than cap rate since it skips operating expenses, making it useful for quickly screening a large list of properties before a deeper analysis.
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